The finance world has undergone significant changes in recent years, thanks to the emergence of financial technology. Gone are the days of enduring long wait times for international transactions and spending valuable time in bank queues.
However, the fintech industry is a highly competitive space. With numerous options available in app stores, it can be challenging for an app to stand out in the finance category.
To overcome this competitive landscape and position your app as a leading fintech solution, leveraging programmatic marketing may hold the key to success.
The Unstoppable Growth of Fintech Advertising
The fintech industry’s growth is staggering. By 2024, the global fintech market is projected to reach at least $201.9 billion, marking a 100% growth rate from 2017. Additionally, 96% of consumers globally are aware of fintech services, with 64% using at least one fintech platform.
In 2021, fintech app downloads reached 6.1 billion worldwide, with leading apps like Venmo and Cash App generating significant revenue. Large traditional banks such as JPMorgan Chase and Bank of America have also seen a surge in mobile users.
4 Great Obstacles to Successful Fintech Advertising
Despite its immense potential, the fintech industry faces several challenges, including customer acquisition, budget constraints, regulatory compliance, and user retention.
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Customer Acquisition
Fintech companies struggle to acquire high-quality leads and customers due to intense competition, financial illiteracy, and trust issues stemming from the industry’s novelty.
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Budgeting
The cost of acquiring customers is high, leading to budget constraints and challenges in finding niche-specific traffic sources while maintaining low cost per acquisition (CPA).
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Regulations & Compliance
Fintech companies must navigate complex advertising restrictions, especially regarding crypto-related and loan/credit services, further complicating their marketing efforts.
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Retention
Low user retention rates pose a significant challenge, impacting revenue and brand credibility within the industry.
How Programmatic May Benefit Fintech Apps [Case Studies]
Programmatic media buying presents a potential solution to the challenges faced by fintech marketers. Through automated bidding and real-time optimization, it offers cost-effective audience targeting and enhanced user engagement while ensuring regulatory compliance.
Programmatic Cost-Effectiveness
Fintonic and Paysend have successfully utilized programmatic media buying to achieve their CPA goals, improve user engagement, and reduce costs. These case studies demonstrate the effectiveness of programmatic marketing in the fintech sector.
Programmatic Boosts User Engagement
Paysend experienced significant growth in app installs and user engagement rates through targeted programmatic advertising, exceeding their performance goals and achieving cost savings.
Regulation Compliance
Programmatic platforms offer tools to ensure compliance with regulations, enabling fintech apps to navigate advertising restrictions while achieving their marketing objectives.
What to Expect from Fintech Advertising?
While programmatic media buying offers numerous benefits, it is not without drawbacks. Nonetheless, it remains a valuable tool for fintech advertising, especially as the industry continues to evolve with new formats and opportunities for hyper-targeting users.
Featured Image Credit: Photo by alphatradezone; Pexels; Thank you!
